16 Oct 2013
GBP/USD threatens 1.5900
FXstreet.com (Edinburgh) -The sterling is losing more than a big figure since today’s peaks beyond 1.6050, taking the GBP/USD to test the key support at 1.59000.
GBP/USD weaker as greenback climbs further
The pair is testing 4-week lows near 1.5900 the figure after the buying interest is pushing the greenback to multi-week highs. The final deal to unlock the fiscal stand-off in Washington boosted the USD, hurting the risk-associated universe, and in the case of GBP, eroding gains post-employment data. “Sterling has risen to test its 20-day moving average (~$1.6060) and has broken the down trendline that has been in place since the start of the month. A move above $1.6080-90 would be the first compelling indication that the bearish head and shoulders top pattern that we identified is not valid”, suggested BBH Global Currency Strategy Team.
GBP/USD relevant levels
At the moment the pair is down 0.49% at 1.5919 and a violation of 1.5914 (low Oct.10) would expose 1.5893 (low Sep.18) and then 1.5869 (low Sep.16). On the upside, the initial hurdle locates at 1.6064 (high Oct.16) followed by 1.6122 (high Oct.9) and then 1.6124 (high Oct.8).
GBP/USD weaker as greenback climbs further
The pair is testing 4-week lows near 1.5900 the figure after the buying interest is pushing the greenback to multi-week highs. The final deal to unlock the fiscal stand-off in Washington boosted the USD, hurting the risk-associated universe, and in the case of GBP, eroding gains post-employment data. “Sterling has risen to test its 20-day moving average (~$1.6060) and has broken the down trendline that has been in place since the start of the month. A move above $1.6080-90 would be the first compelling indication that the bearish head and shoulders top pattern that we identified is not valid”, suggested BBH Global Currency Strategy Team.
GBP/USD relevant levels
At the moment the pair is down 0.49% at 1.5919 and a violation of 1.5914 (low Oct.10) would expose 1.5893 (low Sep.18) and then 1.5869 (low Sep.16). On the upside, the initial hurdle locates at 1.6064 (high Oct.16) followed by 1.6122 (high Oct.9) and then 1.6124 (high Oct.8).